HAMP Ends December 30, 2016: How to Apply for a Loan Modification Before the Deadline

HAMP loan modificationThe federal Home Affordable Modification Program (HAMP), is the loan modification program designed to help homeowners struggling to pay their mortgages and avoid foreclosure. Under HAMP, certain homeowners are eligible for loan modifications that may reduce their interest rates, lower their monthly payments, and, in some cases, even forgive principal.

But HAMP ends on December 30, 2016. The National Consumer Law Center, the foremost consumer advocacy organization in the country, has published information on How to Prepare for the End of HAMP.

The main point is that homeowners who need a loan modification, are behind on their mortgage, or are facing foreclosure must submit an “initial package” on or before December 30, 2016 with their loan modification application. We all know, however, that the banks have all gotten in trouble by delaying and misplacing applications, so the safest practice will be to have everything submitted well before then.

For homeowners who qualify, their permanent loan modifications must be provided no later than December 1, 2017. Before these are provided, homeowners will typically go through a three-month “TPP,” or Trial Payment Plan.

The NCLC’s publication is here: How to Prepare for the End of HAMP

Culik Law has helped many homeowners struggling with their mortgages. If you are behind on your mortgage, facing foreclosure, or are experiencing issues getting a loan modification, contact Culik Law to see if we can help.

Josef Culik

Josef Culik

Attorney Joe Culik has built his reputation on helping people and has dedicated his practice in Boston, Massachusetts to consumer protection, employee rights, and individual personal injury. He has advocated for individuals against some of the largest companies in America and has a passion for helping people uphold their rights against impossible odds. He has filed both individual and class-action lawsuits against most of the major banks, against some of the biggest debt collectors and credit reporting agencies, as well as insurance companies and corporate employers. Contact Joe